PAIH organized a Polish-Korean Business Forum
- South Korea is a leading foreign investor in Poland and a key partner for PAIH;
- in just under 20 years , PAIH has handled 64 Korean investment projects;
- potential investments from South Korea account for almost 1/4 of the value of PAIH’s current portfolio;
- on September 23, PAIH organized the Polish-Korean Business Forum with the participation of 150 entrepreneurs from both countries.
After the US, the Republic of Korea is the second largest non-European foreign investor. At the end of 2020, the value of all South Korean investments in Poland amounted to EUR 3.06 billion (NBP). According to the central economic information center (COIG), at the end of the first quarter of this year, there were 548 companies with Korean capital operating in Poland (an increase of 140% compared to 2019). Nearly 50% of them operate in the Lower Silesian Voivodeship, 20% – in the Mazowieckie Voivodeship, and 14% – the Silesian Voivodeship.
Interest in Poland among Korean entrepreneurs’ results, to a large extent, from the high competence of our specialists, access to subcontractors and/ or the operation of many innovation centers. The Korean economy is among the five most innovative in the world, which translates into the type of foreign investments carried out by companies from this country. Polish incentive system provides innovators with some of the highest tax breaks in the OECD, we also offer a higher return on investment than the EU average. This works on the imagination of Korean investors – said Krzysztof Drynda, Chairman of the Management Board of the Polish Investment and Trade Agency.The Polish-Korean Business Forum as a platform for investment cooperation
In Seoul, on September 23, PAIH held the Polish-Korean Business Forum with the participation of 150 entrepreneurs from both countries. The aim of the meeting was to present Poland’s investment potential in such areas as: transformation and energy infrastructure, electromobility or transport. The Forum will also focus on bilateral cooperation in the public-private partnership (PPP) formula. The speakers were, among others, Deputy Minister of the Ministry of Development and Technology (MRiT) Grzegorz Piechowiak, Chairman of the Management Board of the Polish Investment and Trade Agency (PAIH) Krzysztof Drynda and representatives of Bank Gospodarstwa Krajowego (BGK), the Industrial Development Agency (ARP), the Central Communication Port and the Korean counterpart of PAIH, the Korea Trade-Investment Promotion Agency (KOTRA). The first edition of the Polish-Korean Business Forum took place in 2019 in Seoul. This year’s was the second one.
Korean entrepreneurs have been investing in greenfield projects for years, implementing modern technologies and their own know-how in Poland. Thanks to this, they have become a key investor for many Polish industries and a reliable partner in the development of innovation. Meetings such as the Business Forum in Seoul are a sign of the intensification of Polish-Korean cooperation and that is why I participate in them with such great satisfaction – emphasized Grzegorz Piechowiak, Secretary of State in the Ministry of Economic Development and Technology and Government Plenipotentiary for Foreign Investments in Poland.South Korea is one of PAIH’s leading partners
From January 2002 to August 2022, the Polish Investment and Trade Agency supported the implementation of 64 direct investments from the Republic of Korea. The total value of these projects reached 6.4 billion euros, and the employment declared by the investors amounted to 28,796 jobs. The Korean companies with which PAIH cooperates invest mainly in the consumer electronics and automotive industries. Over the past 20 years, these two sectors have accounted for nearly 3/4 of the number and over 90% of the value of all completed projects. As many as six Korean investments, among them the LG Chem factory in Kobierzyce (EUR 3 billion) and the SK Hi-Tech Battery Poland plant in Dąbrowa Górnicza (EUR 1.5 billion), are among the most expensive FDI handled by PAIH. In turn, in the top ten investments with the largest number of declared jobs were three Korean investments – LG Electronics in Kobierzyce (3,149 ), Heesung near Wrocław (2,742) and LG Electronics in Mława (2,150).
Over the last decades, Korean capital has settled in Poland for good. Since 2002, PAIH has handled over 60 investments from the Republic of Korea. It might seem that the Covid-19 pandemic will reduce the appetite of Korean companies to locate their business in Poland, but nothing like this has happened. To our satisfaction, last year Korean investments have dominated the PAIH portfolio. Entrepreneurs from the Republic of Korea most often choose our country for the location of advanced processes in the field of electromobility, but we have noted that they are also interested in innovative projects in the energy and transport industries. I am glad that with such trusted partners we can build the competitive advantages of the Polish economy – pointed out Krzysztof Drynda.In 2021, South Koreans were the largest investors in terms of the value of projects handled by PAIH. The declared CAPEX amounted to 1.9 billion euros. Currently, the Agency supports the implementation of 12 Korean investments for a total amount of 2.8 billion euros, which can create over 3.5 thousand jobs.
About the Polish Investment and Trade Agency
The Polish Investment and Trade Agency (PAIH) is an advisory institution belonging to the Polish Development Fund (PFR) Group. This is the first point of contact for exporters and investors. It operates both in Poland and through a network of offices around the world. It strengthens the recognition of Polish brands on international markets, promotes domestic products and services as well as technological solutions made in Poland. The agency helps entrepreneurs to choose their optimal path of expansion abroad. It also supports the inflow of foreign direct investments to Poland and the implementation of Polish investments in the country. PAIH cooperates with the public sector and regional partners, offering, among other things: training, audit and promotion of investment properties, cooperation in the organization of business missions and communication support in the implementation of joint projects.